Presentation is loading. Please wait.

Presentation is loading. Please wait.

Acquisition, Retention, and Development University of Bern Institute of Marketing and Management Department of Management and Entrepreneurship Ruedi Beck,

Similar presentations


Presentation on theme: "Acquisition, Retention, and Development University of Bern Institute of Marketing and Management Department of Management and Entrepreneurship Ruedi Beck,"— Presentation transcript:

1 Acquisition, Retention, and Development University of Bern Institute of Marketing and Management Department of Management and Entrepreneurship Ruedi Beck, Sabine Bernhard, Nadia Hauswirth, Sabine Hosennen 16.11.20101

2  Not every customer is profitable!  Econimic value of an individual customer: Present value of cash flows generatet by that indivual minus costs of acquiring, retenting and developing that customer 16.11.20102

3  How to improve the customer profitability: ◦ Stop doing business with people who persinstenly generate losses ◦ Develop an economically sound plan for moving modestly profitable customers into the high-profit sector ◦ Create a plan for retaining customers in the profitable sectors and developing their economic value still further 16.11.20103

4  Quantify defection  What‘s the present value of the average customer?  How much do we lose?  Locate the epicenter of defection  In which areas are the most defections?  Which group of customers defects the most?  Learn from defectors and the dissatisfied  What was the reason for defection?  eliminate it!  Neutralize the causes of defection  Don‘t disappoint, keep the price reasonable, maintain in dialogue, surprise and delight 16.11.20104

5  Expand the amount of profitable business with existing customers  Cross-selling  Vertical integration  Diversification  For example you can examine the customers value chain of activities and determine which links in the chain you can profitably serve 16.11.20105

6  Not every customer is profitable  Focus your recources on acquiring and retenting profitable customers  Identify the reasons of defection of profitable customers  eliminate them  Try to gain a greater share of the wallet of the profitable customers  Invest the money you saved by dropping unprofitable customers in rententing and developing the profitable ones 16.11.20106


Download ppt "Acquisition, Retention, and Development University of Bern Institute of Marketing and Management Department of Management and Entrepreneurship Ruedi Beck,"

Similar presentations


Ads by Google